Drivers and Sustainable Performance Outcomes of AI Adoption Intention: A Multi-Theoretical Analysis in the Entrepreneurial Ecosystem

Artificial Intelligence (AI) will drastically change the way entrepreneurs operate within their respective fields toward sustainable performance. However, although we have some data about how companies will adopt AI and how it is implemented, it is still an under-studied area of research. The goal of this study was to examine the antecedents and consequences of AI Adoption using the Technology–Organization–Environment (TOE) model and Unified Theory of Acceptance and Use of Technology (UTAUT). The researchers collected data from 207 entrepreneurial businesses (including SMEs, startups, and knowledge-based businesses) using a structured questionnaire and analyzed the data using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3. The study’s findings suggest that facilitating conditions, social influences, and competitive pressures are all important positive factors contributing to the firm’s decision on AI Adoption. On the other hand, the data indicate that performance expectancy is a negative factor related to the company’s decision to adopt because of the “reality check” influence of the initial implementation challenges diminishing ease of use. It is also important to mention that several internal factors including effort expectancy and top management support do not have a direct influence. Most importantly, however, the results show that AI Adoption provides companies with an opportunity for strategic renewal (opportunities) and sustainable business models (holistic sustainability). Also, this research provides insight into the Resource-Based View (RBV) and Dynamic Capabilities (DC) theory by showing that AI Adoption creates a significant competitive advantage for companies, making them more successful at creating entrepreneurial and technology-based firms, while providing them increased economic, environmental, and social performance. In conclusion, AI Adoption is a major game-changer for entrepreneurs interested in sustainable practices and the ability to achieve successful, holistic, and sustainable business performance.